Business Process of the Commonwealth Bank: A Strategic Report

This report analyzes the business process of the Commonwealth Bank of Australia, focusing on its expansion strategies and the implementation of an Enterprise Resource Planning (ERP) system. It begins with an introduction to the bank, its global presence, and its objectives, particularly the goal of expanding into new markets. The report defines business processes and selects ERP as a suitable process for the bank's needs, detailing the development of strategic, functional, and non-functional business requirements. It then outlines the determination of system requirements, including cloud vendor selection and software requirements, as well as the importance of leveraging technology to improve customer service through digitization, such as the implementation of a dedicated mobile application. The report discusses the selection of vendors and software packages, emphasizing the importance of vendor reputation and the evaluation of ERP technologies, considering factors like customization, scalability, product quality, and operational robustness. Furthermore, it addresses the true cost of technology implementation, including the accounting system software for internal process digitization, and concludes with a discussion of potential security risks and guidelines for their mitigation.

Running head: BUSINESS PROCESS OF THE COMMONWEALTH BANK
BUSINESS PROCESS OF THE COMMONWEALTH BANK
Name of the Student:
Name of the University:
Author Note:

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BUSINESS PROCESS OF THE COMMONWEALTH BANK
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................3
Business process:.........................................................................................................................3
Development of the business requirements:................................................................................4
Determination of the system requirements:.................................................................................6
Software and selection of the vendor:.........................................................................................7
The ways bank can untilize the technology for the improvisation of the business:....................9
Evaluation of the efficiency of the technology implemented:...................................................10
Examination of the potential security risks associated with the business process:...................11
Guidelines for the mitigation of the security threats:................................................................11
Conclusion.....................................................................................................................................12
References......................................................................................................................................14

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Introduction
Commonwealth Bank of Australia is an multinational bank which has its base at Sydney.
The bank serves in different countries including Asia, Australia and the United States. The bank
has its service on the various sectors like retail banking, investment banking and the corporate
banking. It also includes itself in the wealth management and provides customized banking
service to the niche consumers of the bank. The commonwealth bank is the largest financial
organization which has been listed in the security exchange of Australia. Initially the bank was
founded on 1911, the privatization of the bank happened on 1996.Being one of the ‘big four’ in
the financial market of Australia this bank plays an important role in the business. Apart from
providing the services to the consumers, the bank has taken some steps in order to expand the
business. It has some foreign collaboration with countries like China and the Japan. The good
internal management policy of the bank has made this bank to hold a place in the top 20 list for
the “Dream Employer”.
The main objective of the paper is to make a business report for the client which will
deliver the justification choosing the business process applicable for the expansion of the
business for the commonwealth bank. The report will be effective for both the client and the
business managers of the bank to make the important business decision and take the business of
the bank to the next level. In order to understand the business processes, the definition of the
business process is stated in the paper. This article has discussed about the selected business
process for the bank. The determination and the development of the requirements for the
implementation of the business processes is described in this report. The relevant technologies
those can be used in this course is also evaluated. Some risks and challenges are associated with

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the business implementation plans. In this case the risks and opportunities associated with the
selected business process has been discussed. Further recommendations are made in order to
mitigate the risks and the for future improvement.
Discussion
Business process:
Business processes is defined as the collected of inter related tasks. The compilation of
these tasks will give a certain output which will help the organization to achieve the goals. The
inputs of the tasks are based on then different factors and internal processes of the organization.
These factors ensures that the outcome of the business process will help to add the values in the
services provided by the organization.
There are various kinds of business process exist. The selection of the right business
process depends upon the type of the company and the service provided by the company along
with the organizational goal of that enterprise. The selection of the implementation of the
business process needs to be done after evaluating the requirements of the company and
discussing the matter with the managers and stakeholders of the company.
In case of the common wealth bank the selection of the business process depends on the
various factors and as the bank is a well known organization which provides various services, the
selection of the business process for developing and expanding the business is a complex thing.
The bank has currently operating in the Australia, United States and some of the
countries in Asia. One of the major objectives of the Commonwealth Bank is to expand the
business in more countries in the different continents. In order to do that the rules and regulations

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of the banking for each countries are needed to be evaluated. In order to do this the bank has to
make a separate group to evaluate the situations and opportunities available regarding the baking
service in different countries.
The bank is also planning for a positive digital disruption in the different internal working
processes of the bank. This digital disruption includes the implementation of the accounting
software and other reformation in the internal banking processes.
The bank is also planning to provide better services to the customer using the technology.
The changes for this bank is a diverse project, as there are changes of different kinds. In
order to do that, the inter communication between the diverse modules must be carried out. The
selection of the business process in this case can be ERP (Enterprise Resource Planning). The
required change in the bank is both the reformation of the business process and the technology.
ERP enables the management of the core business processes those are the combination of
business and the technology. Under the ERP all the reformation required for the Commonwealth
Bank can be done. As the process permits working with the diverse modules , the modification of
all the services can be done under the same business process.
Development of the business requirements:
The implementation of the process will be successful after the accurate gatherings of the
requirements. The business requirements needed for the business process can be classified in to
three catagories-
 Strategic business requirements
 Functional business requirements
 Non functional business requirements

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BUSINESS PROCESS OF THE COMMONWEALTH BANK
Strategic business requirements:
The strategic business requirements indicates the requirements those are necessary for the
future development and the growth of the business. In case of the Commonwealth Bank the
strategic business requirements can be the support of the software development companies
for the implementation of the accounting software for the internal banking process.
Functional requirements:
Functional requirements are directly derived from the necessary changes needed for the
company. The project manager needs to be well aware of the consequences of the and the
work flow off the activities while carrying out the plans. The functional requirements are
required to carry out these activities. In the case of the commonwealth bank the functional
requirements are understanding the laws and te regulations of the other countries, so that the
bank can make approach accordingly to those countries in order to expand he business.
Non-functional requirements:
The non functional attributes are concerned with the quality of the project deliverd by the
project. Some of the non –functional attributes can be determined during the course of the
development of the project (Islam et al. 2017).Some of the examples of the non-functional
attributes are availability of the service, flexibility if the service or the products, usability and
the scalability of the products. In case of Commonwealth Bank , the bank is needed to be
ensured that the modified service provided by them is sustainable in nature and is meeting all
the quality attributes. The determination of the quality attribute can be se by the project
managers and the stakeholders of the project at the begiing of the project.

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Determination of the system requirements:
During the determination of the system requirements for the implementation of the ERP
for the Commonwealth Bankin system, the main concern is that the bank is opertaiog
internationally. The other digital disruptions needed for the bank is to implement the
accountning software and improve customer service through the digitization. In order to do
this the following requirements are needed to be considered.
Cloud vendor: The part of digital disruption in the bank is implementation of the cloud
stirage. In order to do this, the bank can adopt the implementation of the hybrid cloud as it
allows the partial storage of data to the cloud (Escobar-Rodríguez and Bartual-Sopena 2015).
The sensitive information can be stored into the private server of the bank. In order to do this
the bank needs to select the right cloud vendor. The selection of the cloud vendor can be
nased on the meetings with the stake holders and te managers of the bank.
Software requirement: The bank is planning to implement the accounting spftware for the
internal business process In order to do this selection of the software packages are needed to
be done. The business contract with the software application provider companies will be
decided on the basis of the selection of the software packages. In order to select the software
packages, the indentification of the requirements needed by the bank is evaluated.
Finding advanced technology for providing service to the consumers: There are various
ways of providing services using technology. The bank has already implementate dthe
service provid3ed by the ATM. The implementation of the fully online dedicate dapp for the
bank is going to be implemented by the bank. Through that application the users can get
benefits of te retail banking including the online cash transaction using internet. This will

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provide better service to the customers which will alos be flexible in nature. In order to d this
the design of the app along with the selction of the platform of the development of the app is
needed. These requirements gathering can be done on the basis of the meetings with the cliets
of the bank and the other stake holders of the bank. The project manager should be concerned
about the specification provided by the stakeholders and the clients of the bank. Apart from
that market survey can be done in order to understand the views of the consumers of the
retail banking about the services provided by the bank. This will help to understand the gap
between the required system and the existing system.
Software and selection of the vendor:
The selection of the vendor and the software packages during the implementation of the
ERP is a majot factor. There are
Considering the situation and reputation of the vendor: The main thing that has to be
taken into accounting while selecting the software and the cloud vendor is the reputation of
the vendor and the way they implement the software or the cloud architecture in the
organization. In case if the hybride cloud architecture is implemented in the organization, the
information stored in the public cloud will be managed by the third party cloud provider. The
security of the data will be alos managed by the third part cloud vendor. The selection of the
cloud vendor should be done properly so that the data in the public cloud can be secured
eough and the architecture of the cloud in the bank can be well organized.
Evaluation if the technology in the ERP system: The technologies used in the ERP system
are needed to be evaluated carefully.The following factors are needed to be considered-
 Whether the ERP system will be customized according to the busiess plan.

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 If the solution is scalable enough to adopt the constant change in the business
processes during the course of the expansion of the business.
 The quality of the products and its impact on the users.
 If the technology is robust enough to work with the multiple operation in the diverse
environment.
The finding the true cost of the implementation of the technology while implementing the
ERP: The true cost of implementation of the technology in the development of te business
process is needed to be evaluated (Pridmore et al. 2014). The evaluation is based on the long
term and short term cost of using the specific technology in the organization (Huang and Yasuda
2016). In this case, the bank can consider the cost of implementation of the accounting system
software for digitization of the internal process (Kilic, Zaim and Delen 2015). The cost of the
implementation can be estimated after the meeting with the software provider. The resources
spent for the implementation of the software can be considered as the one time invest,ent . Thee
main thing in this case is to evaluate the cost of using the software on the daily basis (Ruivo et
al.2016). Moreover, the managers and the project developers of the ERP system in the
Commonwelath Bank should consider if there is any hidden cost involved in the using of those
accounting software (Rajnoha et al. 2014). Apart form that the return on investment of the whole
process is needed to be evaluated after the estimation of the cost of the software is done.
Giving the support and tranning to the employees: The implementaionn of the new
software technology in the bank are needed to be managed by the trained employees. Many of
the employees may not be familiar with the implemented system (Antoniadi,Tsiakiris and
Tsopogloy 2015). In order to solve this problem, the traning to the employees is needed. On the

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other hand the bank needs to have a support tema which will help the bank to solve the issues
regarding the technological problems in the software system.
The ways bank can untilize the technology for the improvisation of the business:
There are various ways through which the bank can utilize the use of the technology.
Three of the ways are described in this article.
Using the cloud architecture: Data storage has become a problem nowadays. In order to
manage the business the bank needs to manage and store large amount of the data. The data used
by the bak are confidential and sensitive in nature (Shen, Chen and Wang 2016). In order to
manage the storage of data and maintain the security of data the bank can adopt the cloud
architecture (Bradford and Gerard 2015). There are different types of cloud architecture
(Parthasarathy and Sharma 2014). However, for the Commonwelath Bank the implementation of
the hybrid cloud can be applicable (Bhattacharya and FOSSO 2015). The hybrid cloud allows
the use of the public cloud and the private cloud. The Commonwelath Bank can use to store the
most confidential information in the bank’s private server or the cloud (Nwankpa 2015). The
security of the private clud can be managed by the organization itself or the cloud architecture
provider company (Kościelniak 2014). The oter information can be stored at the public cloud.
The security of the information in the public cloud is maintained by the third party cloud
provider (Huang and Handfield 2015). This technolfy will reduce the cost for the
Commonwelath Bank for maintaining the infrastructure for storing the data (Jain and Sharma
2016). Apart from that the data can be accessed from any where and any moment. This will
increase the flexibility off the process which will eventually help in the progress of the business.

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Implementation of the accounting software: In order to improve the internal accounting
process, the accounting software can be implemented by the bank. The accounting software like
Xero will help to reduce the human error in the accounting process (Van Der Aalst et al. 2016).
Apart from that these kind of software can do the processing and identification of the relevant
data more accurate way. The use of the software in the accounting process will help the bank to
get the different financial solutions in a short time span (Almajali, Masa'deh and Tarhini 2016).
The Commonwealth Bank can get the results and the relevant financial information from the
outcome after using the software and those relevant information will help the bank authority to
understand the current market situation and take the business decisions accordingly.
Developing the dedicated app for the users: The Commonwealth Bank can think about
the development of the dedicated application or the mobile app that will help the users of the
bank to get connected with the bank at any time of the day from any location (van der 2015). The
app will help the users to access various retail banking services through internet (Shukla et al.
2016). The customers can pay the bill and can do online cash transaction through that dedicated
application. This will provide the consumer a better service as they do not need to go to the bank
in order to get the service and they can access all the services at any time of the day. This
innovative idea of using the technology can give the Commonwealth bank a better position in the
competitive market.
Evaluation of the efficiency of the technology implemented:
The evaluation of the effectiveness of the implemented technology depends on outcome
after the implementation of those technologies (Ruivo, Oliveira and Neto 2015). In this case, for
the right implementation of the technologies needs the right evaluation of the requirements and
the implementation plan (Kulkarni et al. 2015). It can be assumed that deployment of the cloud

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architecture and the implementation of the accounting software for the internal processes of the
banking system will help the bank to expand its business in a sustainable way and the impact of
using the technology on the business of the bank will be positive.
Examination of the potential security risks associated with the business process:
There are certain kinds of security risks associated with the business process of the
Commonwealth Bank.
Cyber Crime: The bank can be affected from the threats of cyber crime. The bank is
using the ATM technology in order to provide the services to the consumers (Panayiotou et al.
2015.). The servers connected with the ATM can be hacked by the criminals and the information
of the consumers can be stolen, which is not desirable (Sarkis and Sundarraj 2015). On the other
hand the bank is planning to implement a dedicated app for the consumers so that they can enjoy
the banking service any time of the day. The security of the app can be violated by the
unauthorized access (Hammer 2015). It that case, breaches of the confidential data can be
happened, which can become major security threat for the bank and the consumers.
Security for the cloud: The implementation of the cloud architecture in storing the data
has certain risks associated with it. The third part vendor may not provide requires security to the
information stored I the public cloud. Apart from that the technical fault from the cloud
provider’s side can make the stored data inaccessible to the bank for some time.
Guidelines for the mitigation of the security threats:
There are several ways for the mitigation of the security threats.